Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport
ISSN (Print): 2376-1326 ISSN (Online): 2376-1334 Website: https://www.sciepub.com/journal/jbe Editor-in-chief: Pr. Abdelfatteh Bouri
Open Access
Journal Browser
Go
Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2014, 2(4), 77-88
DOI: 10.12691/jbe-2-4-1
Open AccessArticle

Micro and Small Scale Enterprises (MSEs) Development Services In women’s Entrepreneurial Start-Ups in Ethiopia: A study conducted in three cities: Dire Dawa, Harar and Jigjiga

Mulu Berhanu Hundera1,

1Haramaya University, College of Social Sciences and Humanities, Ethiopia

Pub. Date: August 11, 2014

Cite this paper:
Mulu Berhanu Hundera. Micro and Small Scale Enterprises (MSEs) Development Services In women’s Entrepreneurial Start-Ups in Ethiopia: A study conducted in three cities: Dire Dawa, Harar and Jigjiga. Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2014; 2(4):77-88. doi: 10.12691/jbe-2-4-1

Abstract

This study aims to investigate the effect of MSEs Development Services on women’s involvement in entrepreneurial activities along with human and social capital as well as family life. The study was conducted in three regions of Ethiopia (Dire Dawa, Harari and Somlai) from December, 2013 to March, 2014. The study employed both the survey and the qualitative approach. For the survey, 204 newly registered women Micro and Small Scale Enterprise (MSEs) owners were randomly selected and the data was collected using ‘’drop and collect” method. The qualitative was conducted through in-depth interview with 20 purposively selected women entrepreneurs. For the survey data, multiple regression analysis was used to identify the significant factors which affect women entrepreneurial start-ups. The quantitative results indicate that MSEs Development Services including access to working premises, market linkage, trainings and technical advises significantly influence women’s entrepreneurial start-ups. Nonetheless, credit facility does not significantly influence women’s entrepreneurial start-ups. Access to the MSEs Development services are in turn influenced by women’s role conflict, family support, and level of family income. The finding also indicate that women’s role conflict, family support, family income level, relative support, women’s personal network and entrepreneurial trainings significantly influence entrepreneurial start-ups. In most of the cases, the qualitative result confirmed the quantitative findings. However, unlike the quantitative the qualitative study shows that marital status, former work experience, and personal skills influence women’s entrepreneurial start-ups. Besides, the qualitative results indicate business network and informal network have effect on women’s access to MSEs development services.

Keywords:
women Entrepreneurs Entrepreneurial startups Human capital family life social capital

Creative CommonsThis work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

References:

[1]  Annette, S. (2005). Support for Growth-oriented Women Entrepreneurs in Ethiopia,Kenya and Tazania. Geneva,Switzerland: International Labour Organization.
 
[2]  Apergis, N., & Pekka-Economou, V. (2010). Incentives and Female Entrepreneurial Activity:Evidence from Panel Firm Level Data. Int Adv Econ Res, 371-387.
 
[3]  Ayyagari, M., A. Demirgüç-Kunt and V. Maksimovic (2011). “Young vs. Small Firms across the World: Contribution to Employment, Job Creation, and Growth.” World Bank Policy Research Working Paper No. 5631. Washington DC: World Bank.
 
[4]  Aldrich, H. E., & Cliff, J. E. (2003). The pervasive effects of family on entrepreneurship:toward a family embeddedness perspective. Journal of Business Venturing, 18, 573-596.
 
[5]  Alam, S. S., Jani, M. F., & Omar, N. A. (2011). An Empirical Study of Success Factors of Women Entrepreneurs in Southern Region in Malaysia. International Journal of Economics and Finance, 3 (2), 166-175.
 
[6]  Che, H., Shamsudin, Mohd, S.,F. Mohammed S. (2012). An Exploratory Study of Motivational Factors on Women Entrepreneurship Venturing in Malaysia. Business and Economic Research, 2 (1), 2162-4860
 
[7]  Curran, M. (2007). Family enterprises as an important factor of the economic development: the case of Slovenia. Journal of Enterprising Culture, 11 (2): 111-130.
 
[8]  CLEP. (2006) Background Issue Paper on the Legal Empowerment of the Poor: Entrepreneurship, Addis Ababa
 
[9]  Cetindamar, D., Gupta, V. K., Karadeniz, E. E., & Egrican, N. (January 2012). What the numbers tell: The impact of human, family and financial capital on women and men’s entry into entrepreneurship in Turkey. Entrepreneurship & Regional Development, Vol. 24 (1-2), 29-51.
 
[10]  Desta, S. (1999), “Economic empowerment”, Reflection, Vol. 1, pp. 31-45.
 
[11]  Evgueni, V., Lars,K. (2007). Cultural background, human capital and self-employment rates among immigrants in Norway. Entrepreneurship & Regional Development, 19 (4), 359-376.
 
[12]  Erogul, M. S. (2011). Social Capital Impediments In The United Arab Emirates: A Case Of Emirati Female Entrepreneurs. Journal Of Enterprising Culture, 19 (3), 315-339.
 
[13]  Federal Democtrtic Republic Of Ethiopia Ministry Of Trade and Industry. (1997). Micro and Small Scale Enterprises Development Strategy. Addis Ababa.
 
[14]  Gedeon, S. (2010). What is entreprenuership? Entreprenuerial practice review, 1 (3), 16-36.
 
[15]  Greve, A., & Salaff, J. W. (2003). Social Networks and Entrepreneurship. The Norwegian School of Economics and Business Administration and Department of sociology, The University of Toronto ENTREPRENEURSHIP THEORY and PRACTICE, 1-22. [Available] at :[http://homes.chass.utoronto.ca/~agreve/Greve-Salaff_ET&P.pdf
 
[16]  Gindling, T. H. and D.L. Newhouse (2012). “Self-Employment in the Developing World” World Bank Policy Research Working Paper No. 6201.
 
[17]  Haltiwanger, J., R. Jarmin, and J. Miranda (2010). “Who Creates Jobs? Small vs. Large vs.Young,” NBER Working Paper No. 16300. Cambridge, Mass.: National Bureau of Economic Research.
 
[18]  Kimani, E.N., & Kombo, D. K. (2010). Gender and poverty reduction: A Kenyan context. Educational Research and Reviews. 5 (01), 24-30. Retrieved September 24, 2011 from http://www.academicj ournals.org/ERR2 ISSN 1990-3839.
 
[19]  Hossain, A, K Naser, A Zaman and R Nuseibeh (2009a). Factors influencing women business development in the developing countries: Evidence from Bangladesh. International Journal of Organizational Analysis, 17 (3), 202-224
 
[20]  Haynie, J. M., Shepherd, D. A., & McMullen, J. S. (2009). An Opportunity for Me? The Role of Resources in Opportunity Evaluation Decisions. Journal of Management Studies, 46 (3), p 337-361.
 
[21]  International Lbour Ornaization(ILO). (2003). Ethiopian Women Entrepreneurs:Going for Growth. Geneva,Switzerland: ILO.
 
[22]  Isidore E., Razli R., Che,Norsiah Binti, M.,N. (2013). The Performance of Female Entrepreneurs: Credit,Training and the Moderating Effect of Attitude towards Risk-Taking. International Journal of Management, 30 (3), 11-22.
 
[23]  Iakovidou, O., Koutsou, S.,& Partalidou, M.(2009). Women Entrepreneurs In The Greek Countryside: A Typology According To Motives And Business Characteristics. Journal Of Developmental Entrepreneurship, 14 (2), 165-179.
 
[24]  Kolvereid, L. (1992). Growth Aspirations Among Norwegian Entrepreneurs. Journal of Business Venturing, 7 (3), 209-225.
 
[25]  Kusku, F., M. Ozbilgin, and L. Ozkale. 2007. Against the tide: Gendered prejudice and disadvantage in engineering. Gender, Work and Organization 14: 109-29.
 
[26]  Kim, P.H., H.E. Aldrich, and L.A. Keister. 2006. Access (not) denied: The impact of financial, human and cultural capital on entrepreneurial entry in the United States. Small Business
 
[27]  Kim, J. L. S., and C. S. Ling (2001). “Work-Family Conflict of Women Entrepreneurs in Singapore,” Women in Management Review 16(5), 204-221
 
[28]  Lee, S. S., & Stearns, T. M. (2012). Critical Success Factors in the Performance of Female-Owned Businesses: A Study of Female Entrepreneurs in Korea. International Journal of Management, 29 (1), 3-18.
 
[29]  Lovely,P., Wakilur,R.,and Jia J. (2012). Determinates of Women Micro-entrepreneurship Development: AnEmpirical Investigation in Rural Bangladesh. International Journal of Economics and Finance, 4 (5), 254-260.
 
[30]  Minniti, M., & Naude, M. (2010). What Do We Know about the Patterns and Determinants of Female Entrepreneurship across Countries? European Journal of Development Research, 22 (3), 277-293.
 
[31]  Mensah,E. (2010). self employed women in Ghana's tourism Indsutry: some evidece of motivation and challenges. Journal of Business and Enterprise Development, 2, 2-40.
 
[32]  Menon, V., Sarkar,M. (2012). Women Participation: Paradoxes in Management of Small Scale Industries: Urban-Rural Disparities. International Journal of Business and Management, 7 (1), 143-149.
 
[33]  MoFED (2010) Growth and Transformation Plan (GTP) 2010/11-2014/15 Draft. Addis Ababa.
 
[34]  Misango, S. B. (2013). Do Women Entrepreneurs Play a Role in Reducing Poverty? ACase in Kenya. International Review of Management and Business Research, 2 (1), 89-103.
 
[35]  Nagesh, P.; Murthy, M. S. Narasimha. (2008). The Effectiveness of Women Entrepreneurship Training Program:A Case Study. The Icfai University Journal of Entrepreneurship Development, 3, 24-40.
 
[36]  Naser, K,W Rashid and R Nuseibeh (2009). Factors that affect women entrepreneurs: Evidence from an emerging economy. International Journal of Organizational Analysis, 17 (3), 225-247.
 
[37]  NASER, K., NUSEIBEH, R., & AL-HUSSAINI, A. (2012). PERSONAL AND EXTERNAL FACTORS EFFECT ON WOMEN ENTREPRENEURS: EVIDENCE FROM KUWAIT. Journal of Developmental Entrepreneurship, 17 (2), 1-23.
 
[38]  Neider, L., 1987. A preliminary investigation of female entrepreneurs in Florida. J. Small Bus. Manage. 25, 22-29.
 
[39]  Ntale, J. (2010). Determinants of entrepreneurial behavior for business competitiveness: A review of theories and models. Paper presented at the first African International Business and Management (AIBUMA) conference on knowledge and innovation leadership for competitiveness.
 
[40]  Paoloni, P.,Demartini, P. (2012). The Relational Capital In Female SMEs. Journal Of Academy Of Business And Economics, 12 (1), 23-32.
 
[41]  Parvin, L., Rahman, M. W., & Jia, J. (2012). Determinates of Women Micro-entrepreneurship Development: An Empirical Investigation in Rural Bangladesh. International Journal of Economics and Finance, 4 (5), 254-262.
 
[42]  Perta, M. &Uschi,B.G.(2009). Social Capital and the Willingness to Become Self-Employed Is There a Difference Between Women and Men? Int. Studies of Mgt. & Org, 39 (2), pp. 33-64.
 
[43]  Raman, K., Anantharaman, R. N., Ramanathan, Santhi. (2013). Environmental, Personality and Motivational Factors: A Comparison Study between Women Entrepreneurs and Women Non Entrepreneurs in Malaysia. International Journal of Business and Management, 15-23.
 
[44]  Roomi, M. A. (2009). Impact Of Social Capital Development And Use In The Growth Process Of Women-Owned Firms. Journal Of Enterprising Culture, 17 (4), 473-495.
 
[45]  Renzulli, L. A., Aldrich, H., & Moody, J. (2000). Family Matters: Gender, Networks, and Entrepreneurial Outcomes. Social Forces, 79 (2), 523-546.
 
[46]  Reta, G. (2000), “Women and micro finance: the case of women fuel wood carriers in Addis Ababa”, MA thesis, Addis Ababa University, Addis Ababa.
 
[47]  Shaila, S.(2012). Motivational factors insturumental in the emergence of women entrepreneurship. Aweshkar Research Journal, 13 (1), 70-76.
 
[48]  Singh, G., & Belwal, R. (2008). Entrepreneurship and SMEsin Ethiopia Evaluating the role, prospectsand problems faced by womenin this emergent sector. Gender in Management: AnInternational Journal, 23 (2), 120-136.
 
[49]  Smallbone, D., Welter, F., Voytovich, A., & Igor. (2010). Government and entrepreneurship in transition economies: the case of small firms in business services in Ukraine. The Service Industries Journal, 30 (5), 655-670.
 
[50]  Swierczek, F. W, & Ha, T. T. (2007). Entrepreneurial orientation uncertainty avoidance and firm performance: an analysis of Thai and Vietnamese SMEs. International Journal of Entrepreneurship and Innovation, 4 (1): 46-58.
 
[51]  Tan, L., Menkhoff T., Chay, Y.,W.(2007). The effects of Enterprenurial Growth Orientation on organizational change and firm growth. Small Enterprise Rsearch, 15 (2), 88-99.
 
[52]  Unger, Jens M.; Rauch, Andreas; Frese, Michael; Rosenbusch, Nina. (2011). Human capital and entrepreneurial success: A meta-analytical review. Journal of Business Venturing, 26, 341-358.
 
[53]  United Nations.(1995). Women in a Changing Global Environment. United Nations New York. Retrieved September 23, 2011 from http://www.ifad.org/pub/other/ruralwomen/5.pdf
 
[54]  Wiklund, J.; Shepherd, D. (2003). Aspiring for, and achivening growth: The moderating role of resourcess and opportunities. Journal of management studies, 1920-1941.
 
[55]  Welsh, D. H. B., Memili,E.,Kaciak,E And Ahmed S. (2013). Sudanese Women Entrepreneurs. Journal of Developmental Entrepreneurship, 18 (2).
 
[56]  Xavier, S.R., Kelley, D., Kew,J. Herrington, M., Vorderwülbecke, A.(2012). Global Entrepreneurship Monitor. Global Entrepreneurship Research Association.
 
[57]  Zahra, N. (2013). Implications of Demographic Antecedents in Determining the Motivational Drives among Women Entrepreneurs: A Case Study of Women Entrepreneurs Venturing in Lahore, Pakistan. Asian Journal of Business Management, 5 (1), 163-173.